Air Asia reinstates Tony Fernandes and Kamarudin Meranun following BDO report

Malaysian chairman of British coach builder Caterham, Tony Fernandes speaks during a press conference of French carmaker Renault group's presenting its strategy, on November 5, 2012 in Paris. Renault and Caterham are to design and produce sports vehicles in Renault's plant in Dieppe, northern France, within the joint Automobiles Alpine Renault company, the groups announced on November 5, 2012. AFP PHOTO / FRANCOIS GUILLOT (Photo by FRANCOIS GUILLOT / AFP)

Air Asia Berhad (AAB) has announced that the BDO Governance Advisory Sdn Bhd (BDO), the independent expert in assisting the Non-Executive Independent Board Committee has presented their findings of the independent internal inquiry.

The report highlighted that AAB has a robust aircraft procurement process which was complied with and AAB’s aircraft acquisition was justifiable and at prices favourable to AAB.

Furthermore, AAB’s sponsorship of the sports team was approved in compliance with its procedures. Airbus’ sponsorship of the sports team was also disclosed to and supported by the Board of Directors of AAB.

The report further stated that the sponsorship showed demonstrable benefits to the AirAsia Group and was not linked to any purchase decisions by AAB.

The report have been presented to the Board and as a result, the Board has resolved to reinstate the executive positions of Tony Fernandes and Kamarudin Meranun.

The appointment of Tharumalingam Kanagalingam as the acting chief executive officer has been rescinded.

Allegations of Caterham F1, being sponsored improperly by Airbus had risen earlier this year. Both Fernandes and Meranun were shareholders in Caterham throughout the period.

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